Beggining Balance

L1: Beggining BalanceI understand that thebeginning balance to be used may be the month end balance, immediately prior to thr start date of the plan, in this case 5/31/02 for payments stsrting 6/21/02.Given the total balance in this single IRA account the calculated payments are too litle under the minimum distribution method and toomuch under #2 and #3.Can I use for calculation purposes a portion of the balance ( via the reverse calculator) to arrive at the approximate annual amount ??If yes, would the IRS disqualify this plan because more should be taken out ?? (based on the total account balance-everything else being equal)Has it being done before??2002-05-26 13:12, By: lexby, IP: [127.0.0.1]
L2: Beggining BalanceHello Lexby:Actually, “reverse engineering” a SEPP program is very smart as a concept. However, and this is a hugh however, the total IRA account balance must be taken into account when computing the SEPP amount under all three methods.In your case, because minimum method yields too little & the amort/annuity methods yield too much; the solution is simple; before computing/commecing simply facture the IRA into 2 smaller IRAs according to the sizes you like and designate one as the SEPP IRA and the other as non-SEPP IRA; e.g. held in reserve for other purposes or future SEPP programs.TheBadgerwjstecker@earhlink.net2002-05-26 14:18, By: TheBadger, IP: [127.0.0.1]

L2: Beggining BalanceOn second thought, if you are really desirous of keeping all of your eggs in one basket or are otherwise extremely risk-adverse, you could just keep dropping the interest rate until you get the amortization method using a J&S life factor to yield and annual withdrawal that suits you.Remember that Notice 89-25 and all subsequent PLR’s use the language “…using and interest rate that DOES NOT EXCEED a reasonable interest rate…”. Thus, the IRS has made it ubundantly clear that there is a ceiling on an interest rate assumption, but no floor. Thus, interest rates, be they relative or fixed like 2% are just fine.TheBadgerwjstecker@wispertel.net 2002-05-27 19:15, By: TheBadger, IP: [127.0.0.1]